AI Is Making Litigation Profitable at Smaller Claim Sizes
AI Is Making Litigation Profitable at Smaller Claim Sizes
Publish Date: 2026-06-30 18:31:00
Source Domain: www.pymnts.com
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– The U.S. commercial auto liability direct written premium rose significantly by 12.3% to over $43 billion in 2024 according to Milliman’s findings.
– Despite this premium increase, the broader commercial auto line recorded a substantial $4.9 billion underwriting loss, marking 14 consecutive years of losses per AM Best’s report.
– Generative artificial intelligence is making it cheaper for plaintiff firms to create cases, potentially increasing litigation without corresponding rate increases.
– Plaintiff firms are more aggressively pursuing automotive accidents because of the mandatory coverage limits that lead to guaranteed payouts, according to Demotech’s observations.
– AI technology is now being used extensively by plaintiff firms to identify and focus on high-potential cases rather than defense firms. This is driven by the contingency-fee model in the legal industry.
– The litigation-intelligence sector is expected to become a continuous, predictive infrastructure aiding in real-time claim filing decisions and settlements, projecting a significant market growth.
– The use of AI by plaintiffs is widening the gap, as defense firms have yet to employ this technology fully despite its availability.
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